The Department for Work and Pensions (DWP) has provided an update for individuals claiming disability benefits who may be entitled to substantial compensation. The payments are aimed at those who previously received certain disability benefits like Employment and Support Allowance but lost disability premiums when transitioning to Universal Credit before January 2019.
This change resulted in some individuals missing out on severe disability premium (SDP) and enhanced disability premium (EDP). Legal firm Leigh Day took legal action against this income reduction, pointing out that some individuals experienced up to a £180 monthly payment decrease.
Acknowledging the loss of income, the DWP agreed to compensate claimants, with Leigh Day estimating the compensation per person to exceed £5,000. However, approximately 13,000 cases are still pending processing and clearance by the DWP.
In an annual report released recently, the DWP mentioned that some underpayments could be owed to individuals no longer actively claiming ESA, making it challenging to identify and correct these errors due to data restrictions. The DWP anticipates resolving the remaining cases by September, with an estimated 57,000 people affected, resulting in a total repayment cost of £452 million.
Following a High Court challenge by Leigh Day, 275 claimants secured settlements ranging from £200 to £3,000 in damages. A DWP spokesperson emphasized the commitment to promptly identify and compensate claimants owed arrears, with most cases already resolved, adding that measures have been implemented to prevent similar errors in the future.
Leigh Day solicitor Ryan Bradshaw expressed satisfaction in settling the claim for his clients, highlighting the financial stress endured by numerous affected individuals due to the transition from legacy benefits to Universal Credit. As the DWP finalizes the migration of all legacy benefit recipients to Universal Credit, benefits like Housing Benefit, Employment and Support Allowance, Jobseeker’s Allowance, Child Tax Credit, Working Tax Credit, and Income Support are being phased out.